2010 Carbon offset project – Geothermal energy in Indonesia

To compensate for CO2 emissions caused by the work of the foundation, we are promoting a geothermal energy project in Java, Indonesia. The geothermal power plant in Gunung Salak provides a safe and reliable energy source to the local population, and saves an average of 115,000 t of CO2 per year.

Type of project Renewable energy: Geothermal

Type of certificates Voluntary Carbon Standard (VCS)

Certification TÜV Nord (DOE)

VCS equivalent to 1,885 t of CO2 from this project were acquired by the Munich Re Foundation to compensate for its CO2 emissions from the year 2010. Since most of these emissions resulted from the Microinsurance Conference held in Manila, it was highly desirable to conduct a compensation project in Southeast Asia.

Geothermal energy in Indonesia Indonesia is the country with the greatest potential for geothermal energy. As home to more than 150 active volcanoes, its potential for geothermal energy is estimated at 21 GW, equivalent to 15 modern nuclear power plants. The geothermal power plant in Gunung Salak, 70 km south of the Indonesian capital, Jakarta, generates electricity with three water-steam turbines that are driven by geothermal energy. This project is an extension of an existing geothermal power plant at a particularly well-suited site on the island of Java.

Almost anywhere in the world, temperatures rise to 35°C to 45°C just one kilometre below the surface, but they can quickly rise to several hundred degrees centigrade where volcanic anomalies occur. Therefore, the principle of geothermal energy is simple: water or other fluids are pumped into the ground via a drill-hole. At temperatures of more than 100°C, the liquid quickly evaporates, creating steam. This steam is conveyed back to the surface and drives a regular steam turbine coupled with a generator. The electricity generated can then be fed into the local grid.

But many prospective extensions of the project have failed to attract financing during periods of economic uncertainty. Carbon finance can help to close this gap. Not only does the project lead to significant reductions in greenhouse gases but it also creates a number of benefits for the local and regional community.

The project’s positive and sustained developmental effects include: -providing qualified job opportunities, both temporarily during the construction phase and permanently for plant operations and maintenance; -improving the availability of electricity for locals by providing a safe and reliable energy source; -indirectly reducing emissions associated with the burning of fossil fuels such as sulphur dioxide, soot, and particulate matter; -helping to diversify the regional and national energy supply and to reduce the dependence on fossil fuels; -supporting technology transfer through training and practical implementation; -utilising a free, clean and locally available energy source;

This project has an overall potential of 115,000 t of CO2 equivalents per year, and thus makes an enormous contribution to the reduction of CO2 emissions.